KUALA LUMPUR (May 2): OCBC Bank (Malaysia) Bhd reported its highest ever annual net profit with a 17% year-on-year rise to RM949 million for the financial year ended Dec 31, 2017, which it attributes to stronger growth in total income.

Total income rose 5% to RM2.46 billion, mainly from growth in net interest income through better management of its liabilities, coupled with higher fee income from increased demand for the bank's wealth management business, OCBC said in a statement today.

The group's profit before tax rose 19% to RM1.27 billion — also a record high — from stronger income growth as well as better cost management and lower impairment allowances.

"Total gross loans and advances remained at RM68 billion as the bank rebalanced its portfolio, while deposits from customers grew 4% to RM74 billion, allowing for greater funding flexibility and an improved liquidity position," said OCBC.

OCBC Malaysia chief executive officer Datuk Ong Eng Bin said he was pleased with the bank's solid performance after a subdued FY16.

"We recorded our best profits ever, affirming that the challenges we faced last year are behind us and the industry as a whole as well. Our growth is also a testament to our ongoing philosophy of ensuring sustainability in all that we do, rather than going for quick gains that could be detrimental to the bank and customers in the long run.

"For 2018, we are poised to continue growing steadily whilst maintaining a keen eye on the delivery quality of our products and services which is ultimately key to benefitting our customers," he said, adding the bank will also continue to invest in and strengthen its digital capabilities.

For corporate and commercial banking customers, Ong said the bank will look to intensify its deposit-building strategies via all channels in business banking, particularly the small- to medium-sized market and the emerging business segment.